Industry urges to slash spirits tax to 20 percent

Today (Sept. 13), prominent local wine merchants and representatives of trade associations held a press conference at the Legislative Council, urging the authorities to reduce the liquor tax to 20% in this year's Policy Address.

Currently, Hong Kong imposes 100 percent ad valorem excise duty on liquors with an alcoholic strength of more than 30 percent.

Industry leaders cited the challenging business environment faced by the local food and beverage industry and the wine sector in the aftermath of the pandemic, hoping that the tax reduction would help alleviate the financial pressure on the industry.

Raymond Luk, from the Hong Kong General Chamber of Wine and Spirits, said that lowering tax will strengthen the bilateral trade between mainland China and HK, and also make HK a very good platform for Chinese baijiu to extend the trade to the international market.

Liberal Party lawmaker Peter Shiu also stressed that lowering the levy could benefit the city through increased tourism and spending.

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Industry advocates for reducing liquor tax to below 30%